Vietnam tightens tax rules for foreign e-commerce firms
Vietnam introduced a new tax framework for e-commerce and digital businesses, placing more responsibility on platform operators to withhold and pay taxes for foreign suppliers and local sellers. The rules took effect on July 1, 2026, as part of an effort to improve tax collection amid the country’s expanding digital economy.
Government Decree No. 252/2026/ND-CP, issued on June 30, 2026, replaced an earlier regulation and broadened tax obligations for platforms handling online transactions. It covers both domestic and international operators, including those managed by third parties.
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Platforms now handle tax withholding for sellers
The new rules require e-commerce platforms with online ordering and payment functions to withhold and pay tax on behalf of certain sellers and foreign suppliers operating through their platforms. These include value-added tax (VAT) and personal income tax (PIT) for business households and individuals, as well as corporate income tax (CIT) and VAT for foreign suppliers.
For domestic sellers, platforms withhold VAT on each transaction generating revenue in Vietnam. They also withhold PIT for resident individuals on all transactions, regardless of where the revenue originates, and for non-resident individuals on Vietnam-sourced revenue.
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For foreign suppliers, platform operators must withhold and pay VAT and CIT on each transaction generating revenue in Vietnam. Where the platform has already withheld and paid VAT and CIT on behalf of a foreign supplier, the foreign supplier is not required to separately declare and pay those taxes for the transactions already covered by the platform’s withholding and payment obligations.
Foreign suppliers face stricter registration and reporting
Decree 252 introduces significant changes to the tax compliance obligations applicable to foreign suppliers conducting e-commerce and digital business activities in Vietnam. Where an e-commerce platform is responsible for tax reporting, the platform must collect transaction information, determine the applicable tax, withhold, declare, and pay VAT and CIT on behalf of the foreign supplier. In such cases, the foreign supplier is not required to separately declare and pay VAT and CIT in Vietnam for transactions already covered by the platform’s tax withholding and payment obligations.
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Where the platform does not undertake these obligations, the foreign supplier remains responsible for maintaining supporting documentation for the Vietnamese tax authorities. Decree 252 also provides for different filing frequencies depending on the supplier’s business model. Foreign suppliers conducting business regularly must generally file and pay tax monthly, while those conducting business on a non-regular basis must generally file and pay tax for each occurrence of Vietnam-source revenue.
Foreign suppliers must also provide information required to determine whether transactions generate revenue in Vietnam. This may include payment information, customer residency information, and access information such as IP addresses or telephone-related data.
